STAND. COM. REP. NO. 407

Honolulu, Hawaii

RE:    S.B. No. 1261

       S.D. 1

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

Sir:

     Your Committee on Judiciary and Labor, to which was referred S.B. No. 1261 entitled:

"A BILL FOR AN ACT MAKING EMERGENCY APPROPRIATIONS FOR COLLECTIVE BARGAINING COST ITEMS,"

begs leave to report as follows:

     The purpose and intent of this measure is to provide employer contributions amounts for plan year 2010-2011 for Hawaii Employer‑Union Health Benefits Trust Fund health benefit plan premiums for the employees of collective bargaining units (1), (2), (3), (4), (5), (6), (7), (8), (9), (10), and (13) and their excluded counterparts.

     Your Committee received testimony in support of this measure from the Department of Budget and Finance; the Hawaii State Teachers Association; and the Hawaii Government Employees Association.

     Your Committee finds that premiums for the state employee health benefit plans have increased since July 2009, and state employees have absorbed the costs of all of these increases.  This increase in employer contributions coincides with the next premium increase to begin in March 2011.

     Your Committee has amended this measure by:

     (1)  Inserting an effective date of July 1, 2050, to allow for further discussion; and

     (2)  Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

     As affirmed by the record of votes of the members of your Committee on Judiciary and Labor that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1261, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1261, S.D. 1, and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Judiciary and Labor,

____________________________

CLAYTON HEE, Chair